Summary
Where its strength - as measured against its peers - gives it some strong potential.
Refining will struggle to maintain recent past performance.
Running leaner should help the company long term.
Credit rating and rising cost of capital could be a risk further out.
Could political correctness over "climate change" take down Exxon Mobil?
Being one of the largest companies in the world and operating in a politically incorrect industry has made Exxon Mobil (NYSE:XOM) a target of many special interest groups and ambitious politicians, hoping to raise money for their cause or secure the next term in office.
Add to that the challenge of an unprecedented low-price oil and gas environment, and it definitely testing the foundations of the company as it takes a number of hits from different sources, while at the same time attempting to keep the company moving forward.
more info on ExxonMobil info investors should know
Showing posts with label Exxon Mobil. Show all posts
Showing posts with label Exxon Mobil. Show all posts
Saturday, January 23, 2016
Wednesday, September 5, 2012
Oil Stockpiles Drop 7.2 Million Barrels
Oil stockpiles in the U.S. plunged 7.2 million barrels last week, according to the American Petroleum Institute, pushing up oil prices for the second day in a row.
The drop in inventories was the most occurring in the U.S. in five weeks.
Hurricane Isaac, according to a report from the Energy Department, could result in a decline of 4.95 million barrels. Just under 50 percent of oil production and 26 percent of natural gas production remains shut down as a result of the storm.
As for gasoline stockpiles, it was down 2.3 million barrels last week, said the American Petroleum Institute. Some analysts believe it's close to being 3 million barrels lower.
Oil for October delivery climbed as high as $96.06 a barrel on the New York Mercantile Exchange, a gain of 70 cents. Brent oil for October dropped $1.09, or 1 percent, to $113.09 a barrel on the ICE Futures Europe exchange, based in London.
Exxon Mobil (XOM) closed Wednesday at $87.33, gaining $0.21, or 0.24 percent. ConocoPhillips (COP) ended the session at $54.87, falling 1.34, or 2.38 percent. Chevron (CVX) closed at $110.77, down $0.45, or 0.40 percent.
The drop in inventories was the most occurring in the U.S. in five weeks.
Hurricane Isaac, according to a report from the Energy Department, could result in a decline of 4.95 million barrels. Just under 50 percent of oil production and 26 percent of natural gas production remains shut down as a result of the storm.
As for gasoline stockpiles, it was down 2.3 million barrels last week, said the American Petroleum Institute. Some analysts believe it's close to being 3 million barrels lower.
Oil for October delivery climbed as high as $96.06 a barrel on the New York Mercantile Exchange, a gain of 70 cents. Brent oil for October dropped $1.09, or 1 percent, to $113.09 a barrel on the ICE Futures Europe exchange, based in London.
Exxon Mobil (XOM) closed Wednesday at $87.33, gaining $0.21, or 0.24 percent. ConocoPhillips (COP) ended the session at $54.87, falling 1.34, or 2.38 percent. Chevron (CVX) closed at $110.77, down $0.45, or 0.40 percent.
Friday, June 1, 2012
Exxon (XOM) Receives Approval for Hebron
Exxon Mobil (NYSE: XOM) received approval from Labrador Offshore Petroleum Board and Newfoundland to proceed with plans to develop the Hebron oil field. The field is located off Newfoundland, Canada.
Partners with Exxon in the endeavor include Chevron (NYSE: CVX), with a 26.7 percent interest; Suncor Energy (NYSE: SU), with 22.7 percent; and Statoil ASA (NYSE: STO), with 9.7 percent. Exxon has a 36 percent stake in the field.
Locally, Energy Corporation of Labrador and Newfoundland has a 4.9 percent stake in the venture.
Production at the field is expected to average approximately 150,000 barrels a day, although it could rise as high as 180,000 barrels a day.
There are an estimate 707 million barrels of oil located in the Hebron oil field.
Partners with Exxon in the endeavor include Chevron (NYSE: CVX), with a 26.7 percent interest; Suncor Energy (NYSE: SU), with 22.7 percent; and Statoil ASA (NYSE: STO), with 9.7 percent. Exxon has a 36 percent stake in the field.
Locally, Energy Corporation of Labrador and Newfoundland has a 4.9 percent stake in the venture.
Production at the field is expected to average approximately 150,000 barrels a day, although it could rise as high as 180,000 barrels a day.
There are an estimate 707 million barrels of oil located in the Hebron oil field.
Monday, May 21, 2012
Chesapeake (CHK) (XOM) (CVX) Climb on Oil Prices, Natural Gas Demand
A number of energy companies enjoyed moves into positive territory today, including Chesapeake Energy (CHK), Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), which were all up on stronger oil prices and a perceived increase in demand for natural gas as a streak of warmer weather approaches.
Shares of energy companies have been getting hit hard as of late, with 12 of the last 13 trading session has shares in the companies down.
The NYSE Arca Natural Gas Index, the NYSE Arca Oil Index, and the Philadelphia Oil Service Index were all trading positive in mid-day action.
Electrical utilities have been changing from coal use to cheaper natural gas, which has helped the beleaguered fuel source get some strength to it.
Oil prices rose to over $92 a barrel, jumping $.62 a barrel a little before noon.
BP (NYSE: BP), Nabors Industries (NYSE: NBR) and Valero Energy Corp. (NYSE: VLO) were all trading much stronger in response to positive signals.
Shares of energy companies have been getting hit hard as of late, with 12 of the last 13 trading session has shares in the companies down.
The NYSE Arca Natural Gas Index, the NYSE Arca Oil Index, and the Philadelphia Oil Service Index were all trading positive in mid-day action.
Electrical utilities have been changing from coal use to cheaper natural gas, which has helped the beleaguered fuel source get some strength to it.
Oil prices rose to over $92 a barrel, jumping $.62 a barrel a little before noon.
BP (NYSE: BP), Nabors Industries (NYSE: NBR) and Valero Energy Corp. (NYSE: VLO) were all trading much stronger in response to positive signals.
Wednesday, April 25, 2012
Exxon (XOM) (CPK) (NGG) (OAS) (SU) (NKA) (HES) Ratings, Price Targets
Exxon Mobil (XOM), Chesapeake Utilities (CPK), National Grid (NGG), Oasis Petroleum Inc. (OAS), Suncor Energy Inc. (SU), Niska Gas Storage (NKA) and Hess (HES) had ratings and price targets on them adjusted by analysts.
Hilliard Lyons upgraded Chesapeake Utilities Corp (CPK) from a "Neutral" rating to a "Long" rating. They have a price target of $45.00 on the company.
Morgan Stanley upgraded National Grid (NGG) to an Overweight" rating.
Stephens upgraded Oasis Petroleum Inc. (OAS) from an "Equal Weight" rating to a "Overweight" rating.
BMO Capital Markets upgraded Suncor Energy Inc. (SU) from a "Market Perform" rating to a "Outperform" rating.
Raymond James upgraded Exxon Mobil (XOM) from a "Market Perform" rating to a "Outperform" rating.
Wells Fargo & Co. upgraded Niska Gas Storage (NKA) from an "Underperform" rating to a "Market Perform" rating.
Raymond James downgraded Hess Corp (HES) from an "Outperform" rating to a "Market Perform" rating.
Hilliard Lyons upgraded Chesapeake Utilities Corp (CPK) from a "Neutral" rating to a "Long" rating. They have a price target of $45.00 on the company.
Morgan Stanley upgraded National Grid (NGG) to an Overweight" rating.
Stephens upgraded Oasis Petroleum Inc. (OAS) from an "Equal Weight" rating to a "Overweight" rating.
BMO Capital Markets upgraded Suncor Energy Inc. (SU) from a "Market Perform" rating to a "Outperform" rating.
Raymond James upgraded Exxon Mobil (XOM) from a "Market Perform" rating to a "Outperform" rating.
Wells Fargo & Co. upgraded Niska Gas Storage (NKA) from an "Underperform" rating to a "Market Perform" rating.
Raymond James downgraded Hess Corp (HES) from an "Outperform" rating to a "Market Perform" rating.
Thursday, March 22, 2012
Exxon (XOM) (EMR) (GLF) (HOS) (SUBCY) (XEC) Ratings, Price Targets
Exxon Mobil (XOM), Emerson Electric Co. (EMR), Gulfmark Offshore (GLF), Hornbeck Offshore (HOS), Subsea 7 SA (SUBCY) and Cimarex Energy Co. (XEC) had ratings and price targets on them adjusted by analysts.
JPMorgan Chase & Co. upgraded Exxon Mobil (XOM) from an "Underweight" rating to a "Neutral" rating.
Nomura upgraded Emerson Electric Co. (EMR) from a "Neutral" rating to a "Buy" rating.
Morgan Stanley initiated coverage on Gulfmark Offshore (GLF). They placed an "Equal Weight" rating on the company.
Morgan Stanley initiated coverage on Hornbeck Offshore (HOS). They placed an "Equal Weight" rating on the company.
JPMorgan Chase & Co. upgraded Subsea 7 SA (SUBCY) from a "Neutral" rating to a "Overweight" rating.
Caris & Co. initiated coverage on Cimarex Energy Co. (XEC). They placed an "Average" rating on the company.
JPMorgan Chase & Co. upgraded Exxon Mobil (XOM) from an "Underweight" rating to a "Neutral" rating.
Nomura upgraded Emerson Electric Co. (EMR) from a "Neutral" rating to a "Buy" rating.
Morgan Stanley initiated coverage on Gulfmark Offshore (GLF). They placed an "Equal Weight" rating on the company.
Morgan Stanley initiated coverage on Hornbeck Offshore (HOS). They placed an "Equal Weight" rating on the company.
JPMorgan Chase & Co. upgraded Subsea 7 SA (SUBCY) from a "Neutral" rating to a "Overweight" rating.
Caris & Co. initiated coverage on Cimarex Energy Co. (XEC). They placed an "Average" rating on the company.
Monday, March 5, 2012
Enbridge's (ENB) U.S. Pipeline Remains Closed
After a two-vehicle accident in Illinois close to the the township of New Lenox, the pipeline of Enbridge (NYSE:ENB), which delivers the majority of oil from Canada to the United States, remains closed, and may remain closed for up to four more days.
The accident took place by an above-ground part of the conduit close to a pumping station.
Enbridge's Line 14/64, which delivers 318,000 barrel a day, will probably result in pressuring prices for Canadian crude in response to the accident.
Line 14, may start up again as early as Wednesday, while Line 64, is estimated to restart on Thursday.
Enbridge spokeswoman Lorraine Little said these estimates are subject to change because they were the initial assessments made by the company.
The capacity for Line 14/64 is north of 2 million barrels a day, which amounts to close to 3 percent of American imports. Canada exports the oil from Alberta tar sands.
Potentially affected by the slowdown is Exxon Mobil (NYSE:XOM), which receives some oil from the pipeline, which they get at its refinery located in Joliet, Illinois. Exxon says at this time they are meeting contractual obligations.
Enbridge was trading at $38.34, down $0.38, or 0.98 percent, as of 12:16 PM EST. Exxon was trading at $86.63, up $0.30, or 0.35 percent.
The accident took place by an above-ground part of the conduit close to a pumping station.
Enbridge's Line 14/64, which delivers 318,000 barrel a day, will probably result in pressuring prices for Canadian crude in response to the accident.
Line 14, may start up again as early as Wednesday, while Line 64, is estimated to restart on Thursday.
Enbridge spokeswoman Lorraine Little said these estimates are subject to change because they were the initial assessments made by the company.
The capacity for Line 14/64 is north of 2 million barrels a day, which amounts to close to 3 percent of American imports. Canada exports the oil from Alberta tar sands.
Potentially affected by the slowdown is Exxon Mobil (NYSE:XOM), which receives some oil from the pipeline, which they get at its refinery located in Joliet, Illinois. Exxon says at this time they are meeting contractual obligations.
Enbridge was trading at $38.34, down $0.38, or 0.98 percent, as of 12:16 PM EST. Exxon was trading at $86.63, up $0.30, or 0.35 percent.
Monday, February 13, 2012
Exxon Mobil (XOM) Flex Muscles in Iraq
After signing an exploration deal with Kurdistan in the latter part of 2011, Exxon Mobil (NYSE:XOM), not unexpectedly, won't be allowed to bid in the next round of oil and gas exploration contracts in Iraq.
That's of little consequence, as the inept and corrupt Iraqi government only allows energy Western businesses in the country to take somewhere around $2 a barrel, regardless of what the price of oil is.
Many Western energy companies have foolishly went along with the Iraqis in hope of getting better deals later, but that could be playing a fool's game, something Exxon Mobil is wise not to engage in.
The decision to work with Kurdistan and its better deals has to be seen as the energy giant sending a message to Iraq, no matter how it all turns out. It also points to the outrageous actions of the Iraqi government towards the West, as the companies participating in the production in the country aren't making any money there.
As long as they are willing to grab onto the carrot, they won't profit in the region until they force the hand of the Iraqi government, as Exxon is wisely attempting to do.
It was extremely premature for other western energy companies to enter into deals with Iraq before decisions were made as to how the oil royalties would be divided up.
This is the reason Iraq has opposed any Western company doing business with the Kurds, as the competition forces them to react to the offer of the Kurds, which is superior to the laughable 'offer' of Iraq to the western oil companies.
Deputy Prime Minster for Energy Hussein al-Shahristani has said he would like to have Exxon working in the country, but noted the company knows the terms of working there.
To work in Iraq is the equivalent of doing charity in the country, and until the government changes their mind, it would be better for any energy company not to deal with a country that doesn't allow businesses to profit there.
That's of little consequence, as the inept and corrupt Iraqi government only allows energy Western businesses in the country to take somewhere around $2 a barrel, regardless of what the price of oil is.
Many Western energy companies have foolishly went along with the Iraqis in hope of getting better deals later, but that could be playing a fool's game, something Exxon Mobil is wise not to engage in.
The decision to work with Kurdistan and its better deals has to be seen as the energy giant sending a message to Iraq, no matter how it all turns out. It also points to the outrageous actions of the Iraqi government towards the West, as the companies participating in the production in the country aren't making any money there.
As long as they are willing to grab onto the carrot, they won't profit in the region until they force the hand of the Iraqi government, as Exxon is wisely attempting to do.
It was extremely premature for other western energy companies to enter into deals with Iraq before decisions were made as to how the oil royalties would be divided up.
This is the reason Iraq has opposed any Western company doing business with the Kurds, as the competition forces them to react to the offer of the Kurds, which is superior to the laughable 'offer' of Iraq to the western oil companies.
Deputy Prime Minster for Energy Hussein al-Shahristani has said he would like to have Exxon working in the country, but noted the company knows the terms of working there.
To work in Iraq is the equivalent of doing charity in the country, and until the government changes their mind, it would be better for any energy company not to deal with a country that doesn't allow businesses to profit there.
Tuesday, January 17, 2012
Exxon (XOM) (NSU) (ERF) (RDS-A) (HES) (CPNO) (PTEN) Ratings, Price Targets
Exxon Mobil (NYSE: XOM), Nevsun Resources Ltd (NYSE: NSU), Enerplus Resources Fund (NYSE: ERF), Royal Dutch Shell (NASDAQ: RDS-A), Hess (NYSE: HES), Copano Energy, L.L.C. (NASDAQ: CPNO) and Patterson-UTI (NASDAQ: PTEN) ratings and price targets.
Nevsun Resources Ltd (NSU) was downgraded by Canaccord Genuity from a “Buy” rating to a “Hold” rating.
Enerplus Resources Fund (ERF) was downgraded by CIBC from a “Sector Perform” rating to an “Underperform” rating.
Exxon Mobil (XOM) was downgraded by Howard Weil from an “Outperform” rating to a “Market Perform” rating.
Royal Dutch Shell (RDS-A) was downgraded by Howard Weil from an “Outperform” rating to a “Market Perform” rating.
Hess (HES) was upgraded by Howard Weil from a “Market Perform” rating to an “Outperform” rating.
Copano Energy, L.L.C. (CPNO) was upgraded by RBC Capital from a “Sector Perform” rating to an “Outperform” rating. They have a price target of $40.00 on the company, up from $36.00.
Patterson-UTI (PTEN) was downgraded by Wells Fargo & Co. (NYSE:WFC) from an “Outperform” rating to a “Market Perform” rating.
Nevsun Resources Ltd (NSU) was downgraded by Canaccord Genuity from a “Buy” rating to a “Hold” rating.
Enerplus Resources Fund (ERF) was downgraded by CIBC from a “Sector Perform” rating to an “Underperform” rating.
Exxon Mobil (XOM) was downgraded by Howard Weil from an “Outperform” rating to a “Market Perform” rating.
Royal Dutch Shell (RDS-A) was downgraded by Howard Weil from an “Outperform” rating to a “Market Perform” rating.
Hess (HES) was upgraded by Howard Weil from a “Market Perform” rating to an “Outperform” rating.
Copano Energy, L.L.C. (CPNO) was upgraded by RBC Capital from a “Sector Perform” rating to an “Outperform” rating. They have a price target of $40.00 on the company, up from $36.00.
Patterson-UTI (PTEN) was downgraded by Wells Fargo & Co. (NYSE:WFC) from an “Outperform” rating to a “Market Perform” rating.
Thursday, May 26, 2011
Chevron's (CVX) Downstream Business Unimpressive
The fact that Chevron (NYSE:CVX) had its "Buy" rating from Jefferies (NYSE:JEF) reiterated on them today isn't because of its downstream refinery business, as margins are anemic in comparison to its upstream oil and natural gas production business.
That's not to say there isn't substantial revenue in the refined products business of Chevron, as the company could have sold as much as $100 billion in refined products in 2010, although it doesn't release those figures.
Among refinded products sold are gasoline, jet fuel, gas oil and kerosene, among other products.
Estimates are refined products make up about 8 percent of the overall stock value of Chevron, mostly because of the low margin business it is. Margins have been at about 2.33 percent in the refined business for the energy giant for 2010.
In contrast, the oil and natural gas production generates margins of 53 percent.
The leading refined product sold by far was gasoline, which accounted for close to $39 billion in revenue in the segment.
Among Chevron's major competitors are BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Halliburton (NYSE:HAL) and ConocoPhillips (NYSE:COP).
Chevron was trading at $103.57, up $0.32, or 0.31 percent, as of 2:05 PM EDT.
That's not to say there isn't substantial revenue in the refined products business of Chevron, as the company could have sold as much as $100 billion in refined products in 2010, although it doesn't release those figures.
Among refinded products sold are gasoline, jet fuel, gas oil and kerosene, among other products.
Estimates are refined products make up about 8 percent of the overall stock value of Chevron, mostly because of the low margin business it is. Margins have been at about 2.33 percent in the refined business for the energy giant for 2010.
In contrast, the oil and natural gas production generates margins of 53 percent.
The leading refined product sold by far was gasoline, which accounted for close to $39 billion in revenue in the segment.
Among Chevron's major competitors are BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Halliburton (NYSE:HAL) and ConocoPhillips (NYSE:COP).
Chevron was trading at $103.57, up $0.32, or 0.31 percent, as of 2:05 PM EDT.
Wednesday, May 25, 2011
Exxon (XOM) (BP) (COP) Close Up on Oil Price Outlook
Shares of oil companies like Exxon Mobil (NYSE:XOM), BP (NYSE:BP) and ConocoPhillips all closed up Tuesday as analysts boosted their outlook on the price of Brent crude.
Morgan Stanley (NYSE:MS) increased its Brent crude projection, noting stronger demand and supply problems related to Libyan production. The brokerage lifted its 2011 Brent crude price projection from $100 to $120 a barrel a barrel and its 2012 projection from $105 to $130.
JP Morgan (NYSE:JPM) reiterated its Brent crude price estimate of $130 in the third-quarter of 2011.
Goldman Sachs (NYSE:GS) raised it projection for Brent crude from $105 to $120 a barrel for 2011, and for 2012 from $120 to $140 a barrel.
BP closed Tuesday at $44.37, jumping $0.34, or 0.77 percent. ConocoPhillips closed at $71.91, up $0.58, or 0.81 percent. Exxon ended the session at $81.29, rising $0.62, or 0.77 percent.
Morgan Stanley (NYSE:MS) increased its Brent crude projection, noting stronger demand and supply problems related to Libyan production. The brokerage lifted its 2011 Brent crude price projection from $100 to $120 a barrel a barrel and its 2012 projection from $105 to $130.
JP Morgan (NYSE:JPM) reiterated its Brent crude price estimate of $130 in the third-quarter of 2011.
Goldman Sachs (NYSE:GS) raised it projection for Brent crude from $105 to $120 a barrel for 2011, and for 2012 from $120 to $140 a barrel.
BP closed Tuesday at $44.37, jumping $0.34, or 0.77 percent. ConocoPhillips closed at $71.91, up $0.58, or 0.81 percent. Exxon ended the session at $81.29, rising $0.62, or 0.77 percent.
Monday, December 20, 2010
Energy XXI (Nasdaq:EXXI) Closes Exxon (NYSE:XOM) Deal
Energy XXI (EXXI) announced they have closed the deal with ExxonMobil (NYSE:XOM), where the acquired natural gas and shallow water shelf oil in the Gulf of Mexico from them.
They said in a press release:
"Pro forma for the acquisition, estimated proved plus probable reserves increase 72 percent to 158.1 million BOE from 92.1 million BOE at the company's June 30, 2010 fiscal year end. Production increases to approximately 46,000 BOE per day, up more than 77 percent from the 25,900 BOE per day average in the most recent fiscal quarter ended Sept. 30, 2010.
The transaction was funded through a combination of cash on hand, borrowings against the company's $700 million corporate revolver, as amended, and proceeds from the previously disclosed private placement by the company's operating subsidiary, Energy XXI Gulf Coast, Inc., of $750 million of 9.25% senior unsecured notes due 2017, which closed earlier today. Actual funding requirements at closing totaled $1.01 billion, including the 10 percent deposit that had been placed in escrow. The purchase remains subject to post-closing adjustments to reflect actual operating results since the effective date of Dec. 1, 2010."
Energy XXI closed Friday at $27.08, up $0.66, or 2.50 percent. Exxon closed at $72.17, down $0.05, or 0.07 percent.
They said in a press release:
"Pro forma for the acquisition, estimated proved plus probable reserves increase 72 percent to 158.1 million BOE from 92.1 million BOE at the company's June 30, 2010 fiscal year end. Production increases to approximately 46,000 BOE per day, up more than 77 percent from the 25,900 BOE per day average in the most recent fiscal quarter ended Sept. 30, 2010.
The transaction was funded through a combination of cash on hand, borrowings against the company's $700 million corporate revolver, as amended, and proceeds from the previously disclosed private placement by the company's operating subsidiary, Energy XXI Gulf Coast, Inc., of $750 million of 9.25% senior unsecured notes due 2017, which closed earlier today. Actual funding requirements at closing totaled $1.01 billion, including the 10 percent deposit that had been placed in escrow. The purchase remains subject to post-closing adjustments to reflect actual operating results since the effective date of Dec. 1, 2010."
Energy XXI closed Friday at $27.08, up $0.66, or 2.50 percent. Exxon closed at $72.17, down $0.05, or 0.07 percent.
Monday, December 6, 2010
ExxonMobil (NYSE:XOM) Blocked in Oil Terminal Sale
ExxonMobil (NYSE:XOM) has again been blocked by the Australian Competition & Consumer Commission over its attempt to sell their share in a fuel terminal located at the port of Gladstone in Queensland.
The regulator said, "The ACCC's preliminary view is that the proposed acquisition is likely to substantially lessen competition in the market for the supply of import-capable petrol and diesel terminal services in the Gladstone region."
Specified was the effect it may have on independent fuel suppliers who could be hindered from entering the region if the deal is allowed to go through.
ExxonMobil was attempting to sell their share in the venture to Caltex Australia.
The regulator said, "The ACCC's preliminary view is that the proposed acquisition is likely to substantially lessen competition in the market for the supply of import-capable petrol and diesel terminal services in the Gladstone region."
Specified was the effect it may have on independent fuel suppliers who could be hindered from entering the region if the deal is allowed to go through.
ExxonMobil was attempting to sell their share in the venture to Caltex Australia.
Friday, November 5, 2010
BP (NYSE:BP) Rises on Exxon (NYSE:XOM) Bid Rumor
Rumors were rampant this morning that Exxon Mobil was interested in acquiring BP (NYSE:BP), pushing the stock up in early trading, where in London it rose as high as 451.35 pence, and up to $43.98 in New York before pulling back.
At 11:45 AM EDT, BP was trading at $43.75, down $0.16, or 0.38.
BP had no comment on the speculation, and Exxon communicated the usual idea that it was "not our practice to comment on market speculation, rumors or media reports."
Even if a company was interested in BP, it seems they would wait until the decision on whether or not they would be considered grossly negligent in the Gulf oil spill, which could cost them billions more than they're looking at at this time.
At 11:45 AM EDT, BP was trading at $43.75, down $0.16, or 0.38.
BP had no comment on the speculation, and Exxon communicated the usual idea that it was "not our practice to comment on market speculation, rumors or media reports."
Even if a company was interested in BP, it seems they would wait until the decision on whether or not they would be considered grossly negligent in the Gulf oil spill, which could cost them billions more than they're looking at at this time.
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) Up on Rising Oil Prices
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) were all in positive territory Thursday on the inflationary measures announced by the Federal Reserve through QE2, which drove the overall commodity market up, along with companies within each sector, including the oil producers.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Wednesday, November 3, 2010
ExxonMobil (NYSE:XOM) to Drill for Natural Gas in Germany's Rhineland
News that ExxonMobil (NYSE:XOM) and other energy companies would begin to drill for natural gas in Germany's Rhineland was met with mixed response, although opposition was from radical environment groups and politicians from the country.
Rhineland has already granted Exxon and other firms from Canada, Australia and Germany to drill in the state.
The focus of drilling will be close to the northern Münsterland region. ExxonMobil plans to start drilling in Borken, Steinfurt and Nordwalde soon. Additional regions include the northern and southern Ruhr Valley and counties in Sauerland.
A so-called energy expert for the Greens, Oliver Krischer, alledged, “We are surprised. We didn’t know a thing. The claims were staked quietly and secretly.”
The usual fears of damaging ground water from drilling for the gas has generated opposition from those living in the Münsterland region. It's unlikely it'll hinder the process for the companies.
Rhineland has already granted Exxon and other firms from Canada, Australia and Germany to drill in the state.
The focus of drilling will be close to the northern Münsterland region. ExxonMobil plans to start drilling in Borken, Steinfurt and Nordwalde soon. Additional regions include the northern and southern Ruhr Valley and counties in Sauerland.
A so-called energy expert for the Greens, Oliver Krischer, alledged, “We are surprised. We didn’t know a thing. The claims were staked quietly and secretly.”
The usual fears of damaging ground water from drilling for the gas has generated opposition from those living in the Münsterland region. It's unlikely it'll hinder the process for the companies.
Tuesday, November 2, 2010
BP (NYSE:BP) Results Lag Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX)
While higher oil prices helped major oil companies like Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX) to solid quarters, although Chevron was weaker than expected, it wasn't able to help BP (NYSE:BP) overcome continuing charges related to expenses incurred from the Gulf of Mexico oil spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
Monday, November 1, 2010
ExxonMobil (NYSE:XOM) Discovers Rich Gas Condensate Off Nigeria
ExxonMobil (NYSE:XOM) revealed today it has made a discovery of rich gas condensate off the coast of Nigeria.
The find was made in the Pegi-1 discovery well, with about 165 net feet of rich gas condensate found. Rich gas condensate is a form of natural gas liquid.
Mark Ward, chairman of Mobil Producing Nigeria Unlimited, the joint venture of Exxon in Nigeria, said, "We are focused on developing oil and gas reserves and supplying natural gas that will boost commercial power production in line with the federal government's aspiration."
Nigeria has been desperate to wean their people off of expensive diesel-fired generators because of the shortage of electricity in the country.
To that end, they added in their statement, that "Significant additional potential remains in untested deeper targets within the Pegi fault block as well as in adjacent fault blocks."
The find was made in the Pegi-1 discovery well, with about 165 net feet of rich gas condensate found. Rich gas condensate is a form of natural gas liquid.
Mark Ward, chairman of Mobil Producing Nigeria Unlimited, the joint venture of Exxon in Nigeria, said, "We are focused on developing oil and gas reserves and supplying natural gas that will boost commercial power production in line with the federal government's aspiration."
Nigeria has been desperate to wean their people off of expensive diesel-fired generators because of the shortage of electricity in the country.
To that end, they added in their statement, that "Significant additional potential remains in untested deeper targets within the Pegi fault block as well as in adjacent fault blocks."
Concerns Rise on ExxonMobil's (NYSE:XOM) Stock Repurchase Strategy
The purpose of the repurchase of shares by ExxonMobil (NYSE:XOM) has UBS (NYSE:UBS) concerned, as it's not to the end they hoped for after the highly dilutive acquisition of natural gas producer XTO.
"XOM repurchased $3 billion in shares in 3Q, and is increasing the pace to $5 billion in 4Q. However, XOM does not seem to intend to accelerate repurchases to retire the shares issued for the dilutive XTO acquisition; rather, the buyback will remain the “flywheel” to regulate excess cash. We are slightly revising ’10/ ‘11 EPS estimates from $5.77/$5.76 to $5.83/$5.96 primarily on the increased pace of the buyback and higher int’l R&M performance," said UBS.
Exxon closed Friday at $66.49, gaining $0.27, or 0.41 percent. UBS raised their price target on the energy giant from $63 to $65.
"XOM repurchased $3 billion in shares in 3Q, and is increasing the pace to $5 billion in 4Q. However, XOM does not seem to intend to accelerate repurchases to retire the shares issued for the dilutive XTO acquisition; rather, the buyback will remain the “flywheel” to regulate excess cash. We are slightly revising ’10/ ‘11 EPS estimates from $5.77/$5.76 to $5.83/$5.96 primarily on the increased pace of the buyback and higher int’l R&M performance," said UBS.
Exxon closed Friday at $66.49, gaining $0.27, or 0.41 percent. UBS raised their price target on the energy giant from $63 to $65.
Thursday, October 28, 2010
BP (NYSE:BP) Watches as Rivals Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) Push Ahead in Gulf
All BP (NYSE:BP) can do at this time in the Gulf of Mexico is stand on the sidelines and watch as Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) move ahead with their attempts to expand their Gulf presence and gain advantage over their rival.
Major companies can now apply for permits now that the oil moratorium has been lifted in the Gulf, and though technically BP could as well, they know at this time it would be a waste of time and energy, and will focus on cleaning up its image and going through the process of having it determined whether or not they're considered negligent in the matter.
Once that is cleared up, they may feel more free to pursue Gulf permits, which CEO Bob Dudley has implied the company will continue to do, as they have no intention of willingly leaving the Gulf unless forced to.
This will give their competitors a key advantage going forward, and BP will have to weigh that against taking the time to resist in lawsuits and claims which may not be legitimate, but better to settle and get behind them rather than waste precious time.
For now, their competitors have the upper hand in the Gulf and are taking measures to expand that advantage as much as possible.
Major companies can now apply for permits now that the oil moratorium has been lifted in the Gulf, and though technically BP could as well, they know at this time it would be a waste of time and energy, and will focus on cleaning up its image and going through the process of having it determined whether or not they're considered negligent in the matter.
Once that is cleared up, they may feel more free to pursue Gulf permits, which CEO Bob Dudley has implied the company will continue to do, as they have no intention of willingly leaving the Gulf unless forced to.
This will give their competitors a key advantage going forward, and BP will have to weigh that against taking the time to resist in lawsuits and claims which may not be legitimate, but better to settle and get behind them rather than waste precious time.
For now, their competitors have the upper hand in the Gulf and are taking measures to expand that advantage as much as possible.
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